Data-driven Value Proposition through CSRD

Globally, an increasing number of companies are reporting on their sustainability activities and environmental, social, and governance (ESG)-related topics, responding both to customer demands and regulatory pressure (Niemann et al., 2025). What initially began as voluntary environmental disclosures has over time evolved into a comprehensive and increasingly regulated framework (Strouhal et al., 2025). A key driver of this development was set in January 2023 by the European Union with the introduction of the Corporate Sustainability Reporting Directive (CSRD). The CSRD not only expands the scope of companies required to report but also extends the requirements regarding the information to be disclosed (Hummel & Jobst, 2024).

The reporting obligations for large companies also generate indirect requirements for small and medium-sized enterprises (SMEs), which often act as suppliers or partners within complex value networks (Di Tullio et al., 2025; Niemann et al., 2025). SMEs are therefore required to comply with the reporting standards or risk the loss of contracts (Di Tullio et al., 2025). To comply with CSRD requirements, companies must collect and provide relevant data across the entire value chain (Niemann et al., 2025), which entails additional costs for them (Hummel & Jobst, 2024). In this context, the availability, accessibility, and quality of the required data represent a major challenge (Krasikov & Legner, 2023).

Companies can also benefit in different ways from CSRD reporting. By communicating their sustainability performance and increasing transparency for stakeholders, companies can better meet stakeholder expectations, strengthen their reputation, and differentiate themselves in the market through comparable sustainability performance (Maione, 2023; Strouhal et al., 2025). Gaining deeper insights into their own sustainability performance represents the central benefit for companies (Niemann et al., 2025). These enhanced insights enable companies to systematically integrate sustainability into operational actions and strategic decision-making processes (Glass, 2012; Niemann et al., 2025).

The aim of our research is to investigate how companies can benefit from the data sharing mandated under the CSRD, rather than perceiving it solely as a regulatory obligation. This research examines the extent to which the data sharing initiated by the CSRD goes beyond reporting obligations and creates opportunities for collaborative value creation among all actors involved along the supply chain. Our first goal is to identify challenges associated with data sharing along the supply chain as well as existing practical solutions approaches and best practices. Our second research goal to identify potential benefits of CSRD reporting. This approach seeks to demonstrate that the CSRD not only serves regulatory compliance but can also create new business opportunities once the associated challenges are successfully addressed.

If you are interested in the research topic, would like to learn more, or wish to share your experience in this field, please feel free to contact Lara Schlaich (lara.schlaich∂kit.edu).

 

Literature

  • Di Tullio, P., La Torre, M., & Rea, M. (2025). Sustainability reporting regulation: hypes, myths and reflections. Management Decision.
  • Glass, J. (2012). The state of sustainability reporting in the construction sector. Smart and sustainable built environment, 1(1), 87-104.
  • Hummel, K., & Jobst, D. (2024). An overview of corporate sustainability reporting legislation in the European Union. Accounting in Europe, 21(3), 320-355.
  • Krasikov, P., & Legner, C. (2023). Introducing a data perspective to sustainability: How companies develop data sourcing practices for sustainability initiatives. Communications of the Association for Information Systems, 53(1), 162-188.
  • Maione, G. (2023). An energy company's journey toward standardized sustainability reporting: addressing governance challenges. Transforming Government: People, Process and Policy, 17(3), 356-371.
  • Niemann, L., Morssinkhof, S., van der Linden, M. J., & de Vries, K. (2025). Data Requests in Value Chains: The Effects of Corporate Sustainability Reporting on SMEs in The Netherlands. Sustainability, 17(17), 8029.
  • Strouhal, J., Horák, J., Resik, A., Gurvitš-Suits, N. A., & Kadak, T. (2025). Stakeholders' perceptions on ESG reporting: On the case of Czechia and Estonia. Journal of International Studies (2071-8330), 18(2).